Cryptocurrency market makers refer to institutions or individuals that provide liquidity and quotes for cryptocurrency trading platforms or projects. They use algorithms and strategies to take advantage of market fluctuations and demand differences to earn profits. Market makers play an important role in the cryptocurrency industry. They can not only reduce transaction costs and improve transaction efficiency, but also promote the development and promotion of new projects.
The sudden rise of DWF
However, there are also fierce competitions and conflicts among market makers, especially in a market environment full of changes and uncertainties. Recently, a new market maker named DWF Labs has caused an uproar. It has been excluded and attacked by its peers, and its legality and integrity have even been questioned.
DWF Labs is a Web3 investment company founded in June 2022, claiming to be one of the world's leading cryptocurrency market makers. The company claims to have provided market making services to more than 50 trading platforms and projects, and has traded approximately $1.5 trillion in digital assets in 2021. The company also announced a series of high-value investment news involving multiple well-known cryptocurrency projects, such as Mask Network, YGG, Synthetix, TON, Radix, etc.
The co-founder of DWF Labs, Andrei Grachev , graduated from Orenburg State University (OSU) and had previous work experience in the logistics industry and online trading industry. He joined the blockchain and cryptocurrency industry in 2017 and served as the general manager of Crypsis Blockchain Holding. Managing Partner, as well as the Vice President of Trading of the Russian Crypto Industry and Blockchain Association (RACIB) and the CEO of Huobi Russia, co-founded DWF Labs in 2018.
Unique approach to market making
Before 2023, DWF Labs did not "break out of the circle"; but since this year, DWF Labs has frequently taken action and participated in the market making of multiple projects, which has attracted great attention. According to data from its official website, since 2018, DWF Labs has conducted spot and derivatives transactions on more than 60 top trading platforms, trading more than 800 currency pairs, covering almost all vertical fields of Web3, and maintaining a leading position in the entire market maker field. maintain a leading position.
In selecting market-making currencies, DWF Labs focuses on East Asian projects and various old and new sentiment-themed targets. Its market-making projects include but are not limited to CFX, MASK, ACH,FET , YGG, etc. Among them, YGG and CYBER at the end of August are projects that have a high degree of discussion about DWF Labs in the encryption industry community.
Doubts are rising
Among these two projects, "pull first and then smash" is the biggest doubt in the community about DWF Labs, and it is also the core of DWF Labs' controversy. Many projects that DWF Labs participates in market making, including these two projects, have experienced sharp rises and falls in a short period of time, but many people have suffered heavy losses in YGG and CYBER. Wintermute once took the lead in questioning DWF Labs' bad intentions. Some people in the community also questioned whether DWF Labs was suspected of "acting as both a referee and a player"?
In addition, some people pointed out that the investment amount of DWF Labs does not match the data on the chain. Its leader has been involved in fraudulent projects such as OneCoin. Its market-making business is not actually executed, but uses investment news to sell tokens on behalf of others. Harvest retail investors. Some people even doubt whether DWF Labs has engaged in money laundering or other illegal activities.
These doubts reached a climax in September 2023, when DWF Labs and three other market makers GSR, Wintermute and OKX were invited to participate in the discussion at the "Web3 Connect" forum organized by C² Ventures during Token 2049. GSR is an established market maker established in 2013, focusing on providing cryptocurrency derivatives and liquidity solutions to institutional clients. Wintermute is an algorithmic market maker founded in 2017, focusing on providing liquidity for decentralized finance ( DeFi ) and Metaverse projects. OKX is a leading global cryptocurrency trading platform founded in 2014 and also provides its own market making services.
GSR posted on the Twitter platform that DWF Labs is not qualified to discuss with them on the same stage because they have no real market-making capabilities and experience, nor real investment capabilities and intentions. GSR also said that DWF Labs is an insult to them and they will not cooperate with or endorse DWF Labs. Wintermute CEO Evgeny Gaevoy liked GSR's tweet and said that they will not cooperate with DWF Labs. OKX did not make a clear position.
DWF rebuttal
DWF Labs did not choose to remain silent, but launched a strong counterattack. Andrei Grachev, co-founder of DWF Labs, responded to GSR's accusations on Twitter, calling GSR an "old antique" that has no innovation and progress and only complains on social media. He also said that DWF Labs’ market-making and investment capabilities are obvious to all, and they do not need GSR’s recognition or cooperation. He also mocked GSR's performance and reputation, calling them "incompetent liars".
Alexey Bashlykov, another co-founder of DWF Labs, also tweeted in support of Grachev and said that they will not be affected by the attacks of GSR and Wintermute, and they will continue to provide high-quality services and investments to the cryptocurrency industry. He also said that they will not participate in the Web3 Connect forum because they don't want to waste time with "ignorant and jealous people."
write at the end
This war of words between market makers has attracted widespread attention and discussion in the cryptocurrency community. Some people support DWF Labs, thinking that they are a potential and innovative company, while others support GSR and Wintermute, thinking that they have experience and credibility. Some companies are neutral or skeptical, believing that DWF Labs needs to provide more evidence and transparency to prove its legitimacy and integrity.
Regardless, this debate reflects competition and changes in the cryptocurrency market maker industry, and also showcases the strategies and styles of different market makers. In a market full of opportunities and challenges, market makers need to constantly adapt and innovate in order to maintain their advantages and influence. At the same time, market makers also need to abide by industry norms and ethics and maintain their reputation and trust in order to win the respect and support of customers and partners.
